US Treasury targets China with new AI and high-tech investment restrictions

The Trump administration, through the US Treasury, has unveiled proposed regulations under the Comprehensive Outbound Investment National Security Act, which Congress approved in 2025, to restrict American investment in China, Russia, Iran and other countries of concern. The rules cover advanced semiconductors, artificial intelligence, selected biotech-related materials and compounds, and brain-computer interfaces, and apply only to investments above $50,000. The Treasury will review public feedback before finalizing them; Treasury Secretary Scott Bessent anticipates they would reinforce the existing Outbound Investment Security Program. The proposal follows prior US efforts, including a Biden executive order limiting capital to China’s AI, semiconductor and quantum computing sectors, as Washington seeks to limit American funds that could support military-related technologies.